• Wed. Sep 13th, 2023

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NCIC launches cost indices to enhance professionalism in construction industry

Sep 13, 2023

The National Construction Industry Council has called on the construction industry to do proper quantity costing analysis before starting any construction project.

NCIC Chief Executive Officer Gerald Khonje was speaking in Lilongwe during the launch of Industry costing indices acroynmed as QIPAS which means Quality Intergrity, Partnership , Aggility and innovation stakeholders.

Khonje called upon stake holders to take an active role in implementing the Industry key indices.

Khonje this far, there has been no basis to determine what is the right range as well as a basis for comparison in assessment of price adjustment.

“Construction Cost Indices will not only help to moderate the budgeting and pricing, a fluctuation formula has been included to be used for calculation and assessment of any contract cost escalations. This will also address unrealist price escalation claims and unfair and unethical practices.
We have seen in the recent past that projects have delayed unreasonably because, among other issues, of financial hiccups resulting in huge cost and time overruns. Our analysis overtime has been that parties to the contract have gone into such contracts without proper cost analysis informed by some scientific model. Hence these Construction Cost Indices will help all parties in their planning, procurement and project execution, ” he said.

In her remarks NCIC Board member who represented the board chair QS Monica Kandodo , said the board was excited at the long last NCIC has managed to develop these Construction Cost Indices which will help to moderate budgeting and pricing of projects as well as managing costs on construction projects in order to ensure value for money in the infrastructure development while ensuring quality and efficiency.

“I was concerned when His Excellency the President, Dr. Lazurus McCarthy Chakwera, bemoaned unethical conduct in the industry when he commissioned the Nkhatabay Water Supply System and Sanitation Project on Thursday, the 7th of September 2023. He noted that such conduct is not only delaying projects but also draining public resources, ”

Kandodo said these Construction Cost Indices will address some of the concerns especially in terms of pricing and cost management however the NCIC has in the recent past embarked on serious and strategic interventions to ensure a transformed and quality driven construction industry.




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